"Sec. 11. General duties and powers of the mayor.

The general duties and powers of the

mayor shall be:

x x x.

(l) To grant and refuse municipal licenses or permits of all classes and to revoke the
same for violation of the conditions upon which they were granted, or if acts prohibited
by law or municipal ordinances are being committed under the protection of such licenses or
in the premises in which the business for which the same have been granted is carried on, or
for any other reason of general interest." (Emphasis supplied)

On the other hand, Section 455 (3) (iv) of the Local Government Code provides:

"Sec. 455. Chief Executive, Powers, Duties and Compensation: xxx.

(b) For efficient, effective and economical governance the purpose of which is the general
welfare of the City and its inhabitants pursuant to Section 16 of this Code, the City Mayor
shall:

(3) x x x.

(iv) Issue licenses and permits and suspend or revoke the same for any
violation of the condition upon which said licenses or permits had been
issued, pursuant to law or ordinance." (Emphasis supplied)

From the language of the two laws, it is clear that the power of the mayor to issue business licenses
and permits necessarily includes the corollary power to suspend, revoke or even refuse to issue the
same. However, the power to suspend or revoke these licenses and permits is expressly premised
on the violation of the conditions of these permits and licenses. The laws specifically refer to the
"violation of the condition(s)" on which the licenses and permits were issued. Similarly, the power to
refuse to issue such licenses and permits is premised on non-compliance with the prerequisites for
the issuance of such licenses and permits. The mayor must observe due process in exercising these
powers, which means that the mayor must give the applicant or licensee notice and opportunity to be
heard.
Central to the resolution of the case at bar is a reading of Section 444(b)(3)(iv) of the Local
Government Code of 1991, which provides, thus:

SEC. 444. The Chief Executive: Powers, Duties, Functions and Compensation.

(b) For efficient, effective and economical governance the purpose of which is the general
welfare of the municipality and its inhabitants pursuant to Section 16 of this Code, the
municipal mayor shall:

xxxx

3) Initiate and maximize the generation of resources and revenues, and apply the same to
the implementation of development plans, program objectives and priorities as provided for
under Section 18 of this Code, particularly those resources and revenues programmed for
agro-industrial development and country-wide growth and progress, and relative thereto,
shall:

xxxx

(iv) Issue licenses and permits and suspend or revoke the same for any violation of the
conditions upon which said licenses or permits had been issued, pursuant to law or
ordinance.

As Section 444(b)(3)(iv) so states, the power of the municipal mayor to issue licenses is pursuant to
Section 16 of the Local Government Code of 1991, which declares:

SEC. 16. General Welfare. – Every local government unit shall exercise the powers expressly
granted, those necessarily implied therefrom, as well as powers necessary, appropriate, or incidental
for its efficient and effective governance, and those which are essential to the promotion of the
general welfare. Within their respective territorial jurisdictions, local government units shall ensure
and support, among other things, the preservation and enrichment of culture, promote health and
safety, enhance the right of the people to a balanced ecology, encourage and support the
development of appropriate and self-reliant scientific and technological capabilities, improve public
morals, enhance economic prosperity and social justice, promote full employment among their
residents, maintain peace and order, and preserve the comfort and convenience of their inhabitants.

Section 16, known as the general welfare clause, encapsulates the delegated police power to local
governments. Local government units exercise police power through their respective legislative
1âwphi1

bodies. Evidently, the Local Government Code of 1991 is unequivocal that the municipal mayor has
the power to issue licenses and permits and suspend or revoke the same for any violation of the
conditions upon which said licenses or permits had been issued, pursuant to law or ordinance. x x x

xxxx

Section 444(b)(3)(iv) of the Local Government Code of 1991, whereby the power of the respondent
mayor to issue license and permits is circumscribed, is a manifestation of the delegated police power
of a municipal corporation. Necessarily, the exercise thereof cannot be deemed ministerial. As to the
question of whether the power is validly exercised, the matter is within the province of a writ of
certiorari, but certainly, not of mandamus.15 (Citations omitted)
 Mayor’s Permit / Business Permit

Mayor’s permit is sometimes referred to as business permit, since it is processed in the

office of the mayor. Since all cities have different ordinances, securing a mayor’s permit
ensures that your business is safe to operate under your city’s ordinance. Take note
that receiving a mayor’s permit can only be done after registering your business with
DTI (for self-employed individuals) and Securities and Exchange Commission (SEC; for
corporations and partnerships). Mayor’s permit needs to be renewed annually.

Business permits regulate safety, structure and appearance of the business community. They act as proof
that your business follows certain laws and ordinances. Requirements vary by jurisdiction, and failure to
comply often results in fines or even having your business shut down. Research the permits you need
before you start any work, set-up or property purchase. That way, you can make sure compliance is in
order and avoid the additional expenses and delays of fixing things later.

A Mayor’s Permit (or Business Permit) is a document issued to any person who shall establish, operate
or conduct any business, trade or activity within the city. Such document is approved only after
submission of preliminary requirements, payment of necessary taxes and fees imposed thereon, and
upon approval of the different signatories stated in the application form for business permit. Additional
requirements may be required especially for those businesses which require
registration/clearance/authorization/certification from certain regulating national government agencies.
Original copy of basic requirements must be presented for verification purposes. Businesses with
complete documents or complied all the requirements during the Business Mapping will be given
preference in the processing of Mayor’s or Business Permit. Processing of Business/Mayor’s Permit will
be undertaken only by the business owner himself/herself or by his/her duly authorized representative.
- See more at: http://koronadal.gov.ph/government/city-mayor/cmo-business-permit-licensing-
division/securing-mayors-permit-business-permit/#sthash.WTFNA0Wn.dpuf

Any individual/entity who wants to start or who will conduct business, activity or trade within the city must apply for
a Mayor's Permit to operate and pay corresponding dues & 
fees.
Securing or renewing of a Business or Mayor’s Permit can be quiet stressful for some entrepreneurs
especially if the fee charged is excessive and iniquitous. But the payment of it cannot be dispensed with
since it is imposed pursuant to the police power delegated to the Local Government Unit (LGU) under
the general welfare clause of Local Government Code (RA 7160).

The fee charged is oftentimes mistaken as tax. while tax is purely for revenue purposes. Hence, the
non-payment of it shall render the business or activity illegal, whereas non-payment of tax shall only
give rise to criminal and civil liability under sec. 254 of the National Internal Revenue Code.

The fee charged is undeniably to cover the expenses for supervision, inspection and control by the
government as held in the case of